Special Needs Trust

A client of mine has two adult children. One has all her funds held in
a Special Needs Trust. Will that qualify as a “Designated beneficiary”
for the Fathers IRA? Will is be allowed a “stretch” opportunity?

Thanks



It can be if done correctly. The PLR to review is 2006 20025, but in that case the SNT was created after the IRA owner’s death. Here is a link to more detail:

http://www.forbes.com/home/2007/05/30/ira-disabilities-trusts-pf-estates

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